True deficit: $3.5 trillion

A report scheduled to be released by the Treasury Department tomorrow is expected to show the true deficit in the Bush administration's 2006 federal budget to be an astounding $3.5 trillion in the red, not $248.2 billion as previously reported.
"The Bush administration is running a federal budget deficit at an unsustainable, system-dooming pace of about $3.5 trillion a year, econometrician John Williams, who publishes the website Shadow Government ... Full Story »

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2.5
by Eric Hays - Dec. 18, 2006

Most readers will not know how to interpret these numbers. A good counter to this article is at http://www.prospect.org/deanbaker/ where Dean Baker says: "it tells people that the liability of all levels of government for retirement pension and health benefits is at least $57.8 trillion, or $510,000 per household. "So as to avoid ruining anyone's holiday spirit, income by the same measure is projected to be around $1,000 trillion or more than $10 million per household. This context should have been included in the story, but I guess they couldn't find the room. One other important point, about two-thirds of this projected liability would disappear if health care costs only increase due to aging and otherwise rise at the same pace as per capita income. This is yet another disaster that is predicated on exploding health care costs. If we ever fix our health care system, then most of the basis for this scare story disappears."

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